Statutory Corporations (Financial Provisions) Act 1975

1Compensation to nationalised industries for losses due to price restraint

(1)Subject to the provisions of this section, the Secretary of State may by order direct, in the case of any of the bodies corporate specified in Schedule 1 to this Act, the payment by him to that body of such amount as may be specified by the order by way of compensation for financial losses which it may, in either of its years 1974-75 or 1975-76, have incurred in consequence of compliance with the national policy relating to limitation of prices.

(2)The Treasury may by order direct that this section shall take effect with the substitution for the words " either of its years 1974-75 or 1975-76 " of the words "any of its years 1974-75, 1975-76 or 1976-77 ".

(3)The amount so specified for any year of a body corporate shall not exceed the deficit on the body's revenue account for that year.

(4)If it appears to the Secretary of State, in the case of any of those bodies corporate, that it is incurring in its current year, or has incurred in its year last ended, such losses as are likely to justify the making of an order under subsection (1) above, he may (subject to subsections (7) and (8) below) make one or more payments to that body by way of advance on the payment which, if an order is made, will be due to the body under the order.

(5)If the Secretary of State determines not to make such an order, the body corporate shall repay to the Secretary of State the total of any advances made to it under subsection (4) in respect of that year; and if an order is made in its case specifying (as compensation for losses of that year) an amount less than that total, it shall repay to him the difference; and any repayment required by this subsection shall be made with interest at such rate as the Secretary of State may determine.

(6)The whole or any part of a payment falling to be made to a body corporate by virtue of an order under subsection (1) above may be made with interest at such rate or rates and in respect of such period or periods as the Secretary of State may determine.

(7)The Treasury's approval shall be required—

(a)for the making of an order under subsection (1) above ;

(b)for the making of any payment by way of advance under subsection (4);

(c)for the determination by the Secretary of State of a rate of interest under subsection (5); and

(d)for the payment of interest under subsection (6), and for any determination by the Secretary of State of the rate or rates of interest or the period or periods in respect of which it is to be paid.

(8)No order shall be made under subsection (1) above in the case of a body corporate, and no payment shall be made to a body corporate by way of advance under subsection (4), except after consultation with that body.

(9)Orders under this section shall be made by statutory instrument; and the power to make an order (whether a power of the Secretary of State under subsection (1) or of the Treasury under subsection (2)) shall not be exercisable unless a draft of a statutory instrument containing it has been laid before the House of Commons and approved by a resolution of that House.

(10)In this section "year" means financial year.

(11)Section 2 of the [1974 c. 8.] Statutory Corporations (Financial Provisions) Act 1974 (which, so far as not spent, is replaced by this section) shall cease to have effect.

2Provisions supplementary to s. 1

(1)Any payment to a body corporate under or by virtue of section 1 above shall be made out of money provided by Parliament and shall be treated as being for the credit of the body's revenue account.

(2)Any sums repaid to the Secretary of State under section 1(5) (including any interest) shall be paid into the Consolidated Fund.

(3)In determining for the purposes of section 1 whether in the case of a body corporate there is or was a deficit on its revenue account for a financial year, and in determining the amount of the deficit, no account shall be taken of any payment made or to be made under or by virtue of that section (whether a payment by the Secretary of State or by a body corporate), except a payment of interest by the Secretary of State under subsection (6) of the section.

(4)For the purposes of applying section 1 to the Post Office, each of the branches of the Post Office's undertaking relating respectively to—

(a)the provision of postal services,

(b)the provision of telecommunication services,

(c)the provision of such services as are mentioned in section 7(1)(b) of the [1969 c. 48.] Post Office Act 1969 (banking, giro and related services), and

(d)the provision of data processing services,

shall be treated as if it were a separate undertaking; and references to financial loss incurred, or to a deficit on revenue account, shall be construed accordingly.

3Borrowing powers of British Steel Corporation

In section 3 of the [1969 c. 45.] Iron and Steel Act 1969 (which provides that the aggregate of the amount outstanding in respect of the principal of money borrowed by the British Steel Corporation and the publicly-owned companies, together with any sums paid to the Corporation under section 2(1) of that Act, shall not at any time exceed an amount which at the passing of this Act stands at £1,250 million) for " £1,250,000,000 " there shall be substituted " £2,000 million ".

4Borrowing powers of National Bus Company

In section 27(3) of the [1968 c. 73.] Transport Act 1968, in paragraph (i) (which specifies the limit of the aggregate amount to be outstanding in respect of the principal of any money borrowed by the National Bus Company and the Company's commencing capital debt), for "£130 million" there shall be substituted " £200 million ".

5Miscellaneous provisions as to borrowing in public sector

(1)In the case of any of the bodies corporate specified in Schedule 2 to this Act, its power to borrow money in a currency other than sterling shall not be subject to any statutory restriction as to the persons from whom, or the terms on which, it may borrow; but the power shall be exercisable only with the consent of the Secretary of State and that consent shall require the Treasury's approval.

(2)Section 18(1) to (3) of the [1957 c. 48.] Electricity Act 1957 (estimates of Area Boards' borrowing requirements; allocation of liabilities on loans to Electricity Council, etc.) shall apply in relation to borrowing by the Council, under section 15(3A) of that Act, from the Commission of the European Communities or the European Investment Bank as they apply (by virtue of section 18(4)) in relation to borrowing by means of Government advances ; and in section 19 of that Act (central guarantee fund), in subsection (1)(a), for the words " any temporary loan " there shall be substituted the words " any temporary or other loan ".

6Consultative and Consumers' Councils (electricity and gas)

(1)Part I of Schedule 3 to this Act has effect with respect to the Electricity Consultative Councils there specified and to various financial and administrative matters concerning those Councils.

(2)Part II of that Schedule has effect for the amendment of Schedule 3 to the [1972 c. 60.] Gas Act 1972 in respect of various financial and administrative matters concerning the National and Regional Gas Consumers' Councils.

(3)Payments under Part I of Schedule 3 to this Act to or in respect of the chairmen of the Councils there mentioned, and also payments under paragraph 1 of Schedule 3 to the Gas Act 1972—

(a)in respect of remuneration of the chairman of any of the Consumers' Councils mentioned in that Schedule; or

(b)in respect of the chairman's pension or otherwise under paragraph 1 (3) of that Schedule,

shall be made by the Secretary of State out of money provided by Parliament; and any expenditure incurred by the Secretary of State in providing funds to Councils under Part I of Schedule 3 to this Act, or under Schedule 3 to the Gas Act 1972, or otherwise under those Schedules, shall be defrayed out of money so provided.

7Supplementary provisions

(1)The enactments specified in Schedule 4 to this Act shall have effect with the amendments there specified, being amendments required in consequence of this Act and other minor amendments.

(2)The enactments specified in Schedule 5 to this Act (which include certain spent provisions and minor provisions which are no longer required) are hereby repealed to the extent specified in the third column of that Schedule.

(3)Except in so far as the context otherwise requires, any reference in this Act to an enactment shall be construed as a reference to that enactment as amended or extended by any other enactment, including this Act.

8Citation

This Act may be cited as the Statutory Corporations (Financial Provisions) Act 1975.